Shareholder Update

♦    Progress on Unity Project                      ♦    Forward Stock Split

In Review  

Since 2007, Unity has been engaged in a Joint Venture Option Agreement with Bear Lake Gold of Montreal Canada.  Bear Lake has been unable to complete exploration and development work as outlined in the Agreement and has notified Unity that they wish to withdraw from the Unity Project.  Unity’s Directors see this as an opportunity to connect with another entity who can assist us in moving forward with the project.

To Date 

Bear Lake, on behalf of Unity, completed one season of drilling in 2008, staked an additional 38 BLM leased claims bringing the total acreage under Unity control to 1400 acres, commissioned aerial photos of the property, and have provided Unity with all paperwork associated with the project upon withdrawal from the project.  Bear Lake has offered to assist Unity in connecting with another entity who may be interested in the project.

Forward Stock Split

The share certificates for the Forward Stock Split affected by the Company in 2009 are finally being issued.  You will find your new certificate in this package of information.  If you previously held multiple certificates, they have been combined into one certificate for your total shares.  If you wish to have them changed, please advise this office.

The forward stock split of 10 new shares is replacing and voiding each one share currently held.  This forward split reduces the Unity stock price from the previous $2.00 to $.20 per share.  As stated previously, Unity’s Directors feel that reducing the share price brings Unity’s shares more into alignment with other junior companies.  Unity shareholders may purchase additional stock at the new lower price.

Future Plans

Unity intends to continue searching for a partnership or merger with a qualified entity who is capable of bringing the Unity project to fruition.  The age and medical issues of management dictate that partnering or merging with a group who can lead the charge, so to speak, may be the best plan for all shareholders.  Unity’s Directors will also consider a sale of the Company and the properties should the opportunity present itself.  A sale of assets, with the right situation and return for shareholders, may also be beneficial.  All options are on the table.

Once again, we thank all shareholders for your extreme patience and perseverance in the long odyssey with this project.  The project’s potential for profit remains excellent based on historical data and on today’s prices for gold and silver.  Unity’s Directors still believe that all shareholders will benefit from this venture.

Passing of Charles R. Israel    We are sorry to report that Unity’s longtime watchman, and security person at the Unity property passed away in January of 2012.  Charlie was a great and loyal friend who will be missed always.

Ray G. Bohn

President

Unity GoldSilver Mines, Inc.